Liaoning magnesia industry under strict environmental protection policy Guangqi Han, Secretary General, Liaoning Provincial Industrial Special Resources Protection Office, China Ladies and gentlemen, distinguished guests, delegates: good afternoon everyone! I am very pleased to share with you the relevant situation of the Liaoning magnesia industry and jointly seek the development prospects of the magnesite industry. Liaoning magnesia industry has an important share in the international market. The magnesite resources in Liaoning Province are uniquely endowed. They are the most concentrated areas of magnesite reserves in China, mainly distributed in Haicheng, Dashiqiao, Xiuyan, Fengcheng, Kuandian, Fushun, etc., with reserves of 2.5 billion tons, accounting for 85.8 of China's reserves. %, accounting for 20% of the world's reserves. Affected by the safe production and environmental protection management of mining enterprises and processing enterprises, in 2017, the province's mining magnesite was 7.056 million tons, down 58.1% year-on-year; the production of magnesia refractory products was 11.511 million tons, down 16.7% year-on-year. Affected by the cancellation of magnesium sand export quotas and tariffs, in 2017, the export of magnesium material products in our province increased significantly, with a total export volume of 3.485 million tons, a year-on-year increase of 34%, of which 1.96 million tons of magnesia, an increase of 69%. Products are mainly exported to Japan, the United States, the European Union, Southeast Asia and other countries and regions. The magnesia industry faces new challenges and opportunities From the perspective of the international environment, the world economic development faces greater uncertainty. In particular, the unilateral trade sanctions and trade protectionist measures adopted by the United States currently bring uncertainty to the growth of the world economy. From the perspective of the domestic environment, China's economy is in the process of adjusting the structure and transforming the growth momentum, and the downward pressure still exists. As a party to the Paris Agreement, the Chinese government attaches great importance to eco- environmental protection and continues to increase resources and environmental protection. In April 2017, the Central Environmental Protection Inspector conducted an inspection of Liaoning. Among them, the focus of the inspection included the magnesia industry. The magnesia industry is a high-energy-consumption and high-pollution industry. Although we have paid attention to energy conservation, emission reduction and environmental management over the years, and achieved certain results, the level of technical equipment is backward, and problems such as single product and homogenization still exist. Environmental protection, Safety production is still a challenge for the development of magnesite industry in our province. Opportunities for development First, the country's policy of expanding domestic demand remains unchanged. The implementation of national strategies such as the coordinated development of Beijing-Tianjin-Hebei and the Yangtze River Economic Belt will certainly increase the demand for downstream industries such as steel, cement, non-ferrous metals and glass. The second is to adhere to the multilateral trading system and promote economic globalization. On the multilateral stage, Chinese leaders declared China's firm stance on supporting the multilateral trading system and promoting the development of economic globalization. China has actively built an open world economy, has signed a free trade agreement with more than 20 countries and regions, and signed a "One Belt, One Road" cooperation agreement with more than 80 countries and international organizations. Third, Liaoning Province attaches great importance to the business environment. The establishment of Liaoning Free Trade Zone will gradually form an institutional innovation system that is linked with the rules of international investment and trade, and create a business environment of rule of law, internationalization and convenience, which will help promote the transformation of the economic development mode and improve the quality and level of development. In December 2016, Liaoning Province issued the “Regulations on Optimizing the Business Environment”. The implementation of the regulations further optimized the business environment and ensured the protection of the legitimate rights and interests of various market entities. Fourth, Liaoning Province attaches great importance to the development of the magnesium industry. In order to promote the sustainable development of the magnesium industry and standardize the business order, the Liaoning Provincial Government has organized the comprehensive management of the magnesium industry in the province since 2016. This year, in the institutional reform, it retained the relevant management functions of special resources such as the magnesium industry. Liaoning Special Resource Industry Development Center is responsible for promoting the development of special resource industries such as magnesite. The current situation of magnesia production Since 2017, in order to further implement the environmental protection inspection work, the province has carried out comprehensive management of the magnesium industry with emphasis on environmental protection and mine rectification, and intensified investigation and punishment of various illegal activities. All magnesite mines in Anshan City have been suspended due to safety rectification, environmental protection and rectification, and so far no production has been resumed. The supply of magnesite ore in the domestic market, especially the special grade and primary ore, is seriously insufficient, and the output of magnesia has dropped significantly year on year. Taking Dashiqiao as an example, in the first six months of 2017, the region produced 1.167 million tons of magnesia, down 26.4% year-on-year; from January to June 2018, it produced 1.476 million tons of magnesia, a decrease of 6.9% compared with the same period in 2016. The imbalance between supply and demand of magnesia caused a sharp rise in prices, especially in 2017, due to increased market panic, the price of magnesia changed more sharply. With the gradual release of panic, the prices of light burn, re-burn, and fused magnesia have fallen back, and the overall price of magnesia has steadily declined. As the mine resumes production, the supply of magnesite ore will tend to stabilize and the price of magnesia will fall back. The impact of strict environmental protection policies on Liaoning magnesia industry In order to effectively improve the environmental quality of the concentrated industrial area of the magnesium industry and complete the rectification task of the feedback of the central environmental protection inspection team, after 10 months of research, demonstration and repeated solicitation of opinions, the provincial environmental protection department and the relevant departments completed the magnesium refractory industry in Liaoning Province. The preparation of the Air Pollutant Emission Standard has been officially released on August 9, 2018 by the Ministry of Environmental Protection and approved by the Liaoning Provincial Government. The implementation of the new standards will inevitably increase the environmental protection costs of enterprises, eliminate backward production equipment with heavy pollution, and compress some production capacity. Therefore, the price of magnesia will remain at a certain high level. The implementation of this standard is conducive to promoting the transformation and upgrading of the magnesium industry in our province, energy conservation and emission reduction, achieving high-end, large-scale, intensive development, and promoting the construction of ecological civilization, which will have a profound impact on the magnesium industry of our province. The first is to use the reverse mechanism to promote the green development of the industry. Due to the research and development and installation of new energy-saving and environmentally friendly kiln and new environmental protection equipment, the investment is large, the difficulty is high, the risk is high, and the operating cost is high. The willingness and enthusiasm of enterprises to actively invest funds is generally not high. The implementation of the standard is to use the reverse mechanism to guide and encourage enterprises to implement technological transformation, promote the application of more energy- efficient, environmentally friendly and efficient process technology and production equipment, protect resources and the environment, and achieve green development of the magnesium industry. The second is to improve barriers to entry and promote technological advancement and industrial upgrading. Due to the simple production process of magnesium refractories, the industry has a low barrier to entry. To improve environmental protection standards is to improve the industry's entry barriers, eliminate a number of backward equipment and production capacity with high energy consumption and high pollution, improve the industrial concentration of the industry, and enhance the market competitiveness of products, thereby driving the technological progress and industrial upgrading of the whole industry. In the future, the magnesium industry of our province will take the opportunity of implementing the new “Standards” and continue to adhere to the development concept of “innovation, coordination, green, openness and sharing” to “high efficiency, low consumption, low emissions, recycling and sustainable development”. "Towards the main development direction, we will continue to deepen structural adjustment, promote industrial transformation and upgrading, and promote the transformation of the industry from resource advantages to industrial advantages." Here, I sincerely invite domestic and foreign companies to invest in Liao, and actively participate in industry integration and restructuring, environmental protection, technological transformation and equipment upgrades, and create a win-win situation. Thank you all! .